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Each year, Allen Motors surveys 7,200 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the

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Each year, Allen Motors surveys 7,200 former and prospective customers regarding satisfaction and brand awareness. For the current year, the company is considering outsourcing the survey to RBG Associates, which has offered to conduct the survey and summarize results for $36,448. Jason Allen, the president of Allen Motors, believes that RBG will do a higher-quality job than his company has been doing but is unwilling to spend more than $10,000 above current costs. The head of bookkeeping for Allen has prepared the following summary of costs related to the survey in the prior year: $18,400 6.100 2,178 Mailing Printing (done by Lester Print Shop) Salary of Pat Fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned (121 hours x $18) Share of depreciation of computer and software used to track survey responses and summarize results Share of electricity/phone/etc. based on square feet of space occupied by Pat Fisher vs. entire company 1,080 630 $28,388 Total What is the incremental cost or savings of going outside vs. conducting the survey as in the past? The incremental of going outside $ Will Jason Allen accept the RBG offer? Craig Knight accept the RBG offer

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